Government asks PSUs to plug in to solar power

New Delhi: Cash-rich public sector units have been asked to contribute to achieving government's ambitious target of 1,00,000 MW solar power generation target by 2022, a senior official in Ministry of New and Renewable Energy said.

Joint Secretary in the Ministry of New and Renewable Energy, Tarun Kapoor, said the Ministry has already written to such PSUs and also held discussions with them in this regard.

"Lot of PSUs have huge reserves of money with them. They can invest some amount here. We have already written to them and held discussions. The response has been quite good," Kapoor said on the sidelines of an event here.

Power utility NTPC has already communicated that it would create 3,300 MW solar power generation capacity. Coal India, which produces 80 percent of India's coal, has said it would do 750 MW to begin with, Kapoor said.

PSUs belonging to the oil and natural gas sector which generates solar power of small capacities have decided to form a joint venture company and create a capacity of 1,000 MW.

"I think that they are now getting the company formed," Kapoor said. PSUs' investing in the new and renewable sectors are entitled to some tax benefits for the equity part. India has set an installation capacity target of 1,00,000 MW solar and 60,000 MW wind energy by 2022 for the long-term energy security of country which would entail an investment of Rs 10 lakh crore.

It might require Rs 6 lakh crore for achieving the solar target and Rs 1.5 lakh crore for nearly doubling the capacity in the wind power sector. The remaining would be required for tapping opportunities in other verticals of new and renewable sector including for transmission.